Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Investor Presentation (September 2009)
22 slides from Tabcorp's investor presentation, Sep 3, 2009
Slide 1: Casinos Division Update
Casinos Division Update Tabcorp Holdings Limited Market Briefing 3 September 2009 1 ABN 66 063 780 709
Slide 2: Agenda
Agenda Division ¾ Introduce the Casinos leadership team ¾ Review opportunities for growth and expansion ¾ Present framework for a high performing casinos division Project STAR ¾ Provide update on scope, schedule and investment ¾ Visit new Sports Theatre & Bar 2
Slide 3: The Team
The Team Casinos Division Leadership Key Experience 23 23years yearscasino casinoindustry industryexperience experienceininAtlantic AtlanticCity City Larry Mullin Formerly Formerly President and COO at the Borgata HotelCasino President and COO at the Borgata Hotel Casino&&Spa Spa Chief Executive
Slide 4: Australian casinos market (main states)
Australian casinos market (main states) Northern Territory EGMs 798 Tables 44 Queensland Revenues $109m EGMs 3,548 -------------------------------- Tables 243 Total EGM 1,988 Revenues $651m -------------------------------- Total EGMs 47,465 Western Australia New South Wales EGMs 1,750 EGMs 1,500 Tab
Slide 5: Tabcorp casinos profile
Tabcorp casinos profile NSW Queensland EGMs (slots) 1,500 1,384 1,306 348 MTGMs 147 25 26 10 Tables 238 92 87 22 Hotel rooms 480 593 130 194 Bars/Restaurants (owned) 9/5 7/6 6/6 6/3 Theatres 2 1 None TECC Car spaces 2,500 2,292 630 570 Immediate opportunity Phased approach – transfer of systems/skil
Slide 6: Recent revenue performance
Recent revenue performance Change Change Change ¾ Stronger 2H09 Operating Revenue 1H09 2H09 FY09 on pcp on pcp on pcp ¾ Visitation up 1.2% and EGMs 235 (1.2%) 231 3.2% 465 0.9% rated play up 10.1% Main Gaming Floor 205 4.1% 209 10.1% 414 7.1% ¾ Market share stable Private Gaming Rooms 91 (2.7%) 104
Slide 7: Recent performance supports STAR expansion
Recent performance supports STAR expansion EGM/MTGM counts and revenue growth FY10 Star City 1H08 2H08 1H09 2H09 YTD Aug EGMs No. of machines 1,444 1,438 1,372 1,380 1,500 Revenue Change (pcp) (2%) 1% 12% MTGMs No. of machines 54 60 122 138 147 Revenue Change (pcp) 85% 141% 135% ¾ Improving performa
Slide 8: Customer groups
Customer groups ¾ Avid Experienced Player (Drive-in Locals) EGMs and MGF provide our greatest opportunities Off-peak demand generation through active database marketing ¾ Rejecter/Tourist A lifestyle brand offering one-of-a-kind entertainment Must see destination offering variety, choice and
Slide 9: The Mission
The Mission: The relentless pursuit of positive and memorable experiences at a profit 9
Slide 10: The blueprint
The blueprint PLANNING Research Analysis Design Investment PRODUCT PRICING Escape Trade Up Indulge Value Interact Reward Play Long Run Mission POSITION PEOPLE Fun Trust Upscale Respect Energetic Confidence PROCESS International Support Convenient Hassle-Free User-Friendly Seamless 10
Slide 11: Integration example – marketing and loyalty
Integration example – marketing and loyalty Short term opportunities Post IT implementation ¾ Investment in gaming technology – Konami ¾ Zero-based approach to rebuilding marketing programs to drive profitable Reward and incentive mechanisms growth • Slot Dollars & Casino Dollars • Bonusing ¾ Shar
Slide 12: Project STAR
Project STAR 12
Slide 13: Opportunity audit for the Sydney market
Opportunity audit for the Sydney market The market opportunity in NSW ¾ Consumers are yearning for a trade-up product proposition ¾ Sydneysiders want to consume diverse and stimulating experiences ¾ Timeless experiences not trendy experiences The elements at STAR ¾ Customer service and interaction a
Slide 14: Scope and investment review outcomes
Scope and investment review outcomes ¾ Adjustments made Risk - Upgrade mechanical and electrical services - Improve redundancy Return - Fit out retail tenancies - Increase number of Star City operated F&B facilities Expansion - Nightclub and Spa - Main gaming floor capacity, eg Poker - Gaming
Slide 15: STAR expansion
STAR expansion Offer Measure Increase FY12 ¾ Gaming Tables +118 328 MTGMs +198 357 EGMs +0 1,500 ¾ Accommodation Rooms/apartments +252 732 ¾ Car parking +500 3,000 ¾ Amenities Bars +1 12 Restaurants +8 20 Theatres - 2 Retail +2,000m2 5,000m2 Nightclub +1 1 Spa +1 2 ¾ Daily visitation +6k 30k 15
Slide 16: Project timeline
Project timeline Progress to date Concept & Design Planning, design & procurement Re-tender Hotel/PR Excavation Jan 2010 MGF Aug 2011 Sports Theatre & Bar Poker Baccarat/ NB Remaining Stages Hotel/Pirrama Road Jan 2012 Board Approval Development Approval 2008 2009 2010 2011 2012 16
Slide 17: Delivery methodology
Delivery methodology ¾ Tender process completed and major contractors appointed ¾ Tendered works in line with original budget ¾ Approximately 60% of costs under lump sum contract (expected to increase) Scope of Works Contract type Contractor Hotel Hotel Pirrama PirramaRoad Design Design&& Brookfield
Slide 18: Disruption management
Disruption management ¾ Maximise gaming product on MGF during refurbishment Maintain 1,500 EGMs throughout MGF refurbishment Implement Poker solution to create swing space on MGF ¾ Marketing and Communications Optimise marketing investment during development to drive visitation Smart and tim
Slide 19: Main Gaming Floor Sequencing
Main Gaming Floor Sequencing Poker (Level 2) Commence: Aug 09 End Nov 09 MGF Expansion over new hotel site Baccarat/Noodle Bar Commence Aug 09 End Feb 10 Sports Theatre & Bar Diamond Bar/UGA Completed – Aug 09 Commence Sep 09 End 2011 19
Slide 20: The Mission
The Mission: The relentless pursuit of positive and memorable experiences at a profit 20
Slide 21: Q&A
Q&A 21
Slide 22: FKL TAB
== FKL TAB Star City ¢ Ott. TAB JUPITERS CONRAD TREASURY Jupiters tab sp®rtsbet ¢
Tabcorp Holdings — Investor Presentation (September 2009) on 6ix